Chugoku Marine Paints: 27/3 Q1 results: Operating profits up by more than 40% Quick Note

研报英文原文证据摘录

Chugoku Marine Paints: 27/3 Q1 results: Operating profits up by more than 40% Quick Note

Global Markets Research

31 July 2026Chugoku Marine Paints

4617.T 4617 JP / EQUITY: JAPAN CHEMICALS & TEXTILES

27/3 Q1 results: Operating profits up by more than Rating Buy40%

Target price JPY 5,000Quick Note

Closing price

31 July 2026 JPY 3,585First impression slightly positive: Major boost from price revisions

Chugoku Marine Paints reported 27/3 Q1 sales of ¥37.8bn (up 16.0% y-y) and operating (Note: Quick Note reports are not a

profits of ¥5.68bn (up 44.8%). Input costs for naphtha-derived marine paints rose sharply vehicle for changes to ratings, target

because of the situation in the Middle East, but selling prices rose in Japan in particular prices, or earnings forecasts)

thanks to price revisions under the surcharge scheme. Price revisions boosted operating

profits by around ¥1.9bn.

Q1 earnings by region

Sales in Japan rose 31.7% y-y to ¥14.05bn as the company adjusted selling prices in Research Analysts

response to soaring input costs for marine paints. Operating profits increased 3.6-fold to Japan small cap

¥2.41bn in Q1, partly because COGS included inputs purchased prior to sharp price rises. Mikihiko Yamato - NSC

Sales in China rose 31.3% y-y to ¥6.37bn on a sharp rise in shipment volumes of paints mikihiko.yamato@nomura.com

+81 3 6703 1186for new ships. Operating profits rose only 2.3% to ¥0.71bn because of a decline in the

number of vessels entering dry dock and a deterioration in the product mix.

Sales in South Korea fell 12.8% y-y to ¥3.97bn on a fallback from a concentration of

major new paint projects for new ships a year earlier and project delays at some

shipyards. However, operating profits rose 0.8% to ¥0.66bn on higher ASP thanks to